Values Moving Higher For Lakefront Homes In Tallahassee
Lakefront homes in Tallahassee are having their best year in a long, long time.
It was less than two years ago when we reported that lakefront homes are cheaper than ever, but oh how quickly times change. When the real estate market hit bottom in 2012, we saw the value of land become almost inconsequential, with buyers valuing the homes far more than the homesite.
Waterfront homes have always enjoyed a "premium" over their land viewing counterparts, but the range of this premium fluctuates over time. As we pointed out in our previous article in 2013, that premium had fallen to an all-time low of just 14% (meaning buyers were paying 14% more for homes on the water than they were for homes not on the water).
But things have changed in 2015. I guess buyers have been paying attention.
Lakefront Home Values Soar
The premium between homes on the lake versus those not on the lake has soared to 33% in 2015. This means that this might be the best year ever to entice a homebuyer to your property if you are thinking about selling your waterfront home.
In the real estate graph above, the average value of homes is measured on the left vertical axis, while the waterfront premium is recorded on the right vertical axis.
The brown "dirt" area shows home values for existing homes NOT on the water (meaning not counting new construction), while the blue "water" area shows home values for existing homes on the water.
The resulting ratio is shown as vertical bar, and it is this ratio that we refer to as the waterfront premium.
Waterfront Homes For Sale
Take a look at these existing homes for sale on the water in Tallahassee. The first three show exceptional value and are offered well below that 33% premium that we have seen from the rest of the market. Imagine buying a home at the 2013 premium today?
Waterfront Idx
I hope you have enjoyed our report on lakefront homes in the Tallahassee real estate market. If you own a home or would like to buy one, ensure that you work with an agent that understands the unique marketing requirements for your specific home type, as well as the existing market within your niche.
No two homes are exactly alike, and if you want to ensure that you make the most from your next real estate transaction, work with a real estate agent who can demonstrate exceptional knowledge of the specific market where you would like to compete. Of course, if you would like to know more about waterfront homes in Tallahassee, just drop me a note and we will be in contact right away.
Discussion
These are the AVERAGES. Values spike up significantly when owners take care of and make strategic improvements to add to waterfront property values.
Joe, thanks for the info. We will share it with our clients! We don't sell properties; we make them better.
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